Tungsten Mining has successfully raised $53 million through a heavily oversubscribed placement, positioning itself to advance its critical tungsten projects amid rising commodity prices.
- Raised $53 million via institutional placement at $0.19 per share
- Strong demand exceeded placement capacity from new and existing investors
- Funds earmarked for Mt Mulgine and Watershed project development
- Placement priced at a 15.6% discount to last close, with no shareholder approval needed
- Company well positioned amid strengthening tungsten and associated mineral prices
Robust Capital Raise Signals Confidence
Tungsten Mining NL (ASX – TGN) has announced a successful capital raising of $53 million through a single tranche placement to institutional and professional investors. The placement was priced at $0.19 per share, representing a modest discount to the recent trading price, and attracted strong demand that exceeded the available allocation. This enthusiastic response from both existing shareholders and new Australian and international investors underscores growing confidence in Tungsten Mining’s strategic direction and asset portfolio.
Funding Critical Mineral Projects
The proceeds from the placement will primarily support advancement of the company’s flagship Mt Mulgine Project, including further exploration aimed at expanding its already significant mineral resource. Additionally, funds will be directed towards accelerating study activities at the Watershed Project, which has already received key approvals. These projects are central to Tungsten Mining’s ambition to become a major supplier in the global tungsten market, a metal critical to various high-tech and industrial applications.
Strategic Timing Amid Rising Commodity Prices
The capital raise comes at a time when commodity prices for tungsten and related minerals such as copper, gold, silver, and molybdenum are strengthening. This favourable market environment enhances the potential value of Tungsten Mining’s portfolio and provides a solid foundation for the company to progress towards production milestones. Chairman Gary Lyons highlighted the placement as a clear endorsement of the company’s strategy and the increasing importance of tungsten in global supply chains.
Placement Details and Market Impact
The placement involved issuing approximately 279 million new shares without the need for shareholder approval, split between the company’s placement capacities under ASX Listing Rules 7.1 and 7.1A. Joint Lead Managers Euroz Hartleys and Canaccord Genuity, alongside Co-Manager Leeuwin Wealth, facilitated the transaction. The company’s strengthened balance sheet now provides the financial flexibility to advance its critical mineral projects efficiently, while maintaining operational momentum.
Looking Ahead
With settlement expected in early February and new shares to commence trading shortly thereafter, Tungsten Mining is poised to leverage this capital injection to unlock further value from its Australian tungsten assets. The company’s progress will be closely watched by investors keen to see how it navigates the next phase of development amid evolving market dynamics.
Bottom Line?
Tungsten Mining’s strong capital raise sets the stage for accelerated project development amid a tightening global supply of critical minerals.
Questions in the middle?
- How will Tungsten Mining prioritise spending between Mt Mulgine and Watershed projects?
- What are the expected timelines for key milestones following this funding boost?
- How might rising tungsten prices influence the company’s long-term production strategy?